Sears Canada has announced that is applying for court approval to liquidate all of its remaining stores and assets.
Tuesday’s announcement comes after Sears Canada Inc. failed to find a buyer that would it allow it to continue as a growing concern.
The retailer has been operating under the Companies’ Creditors Arrangement Act since June.
“Sears Canada, with the recommendation of its advisors and approval of the Monitor, FTI Consulting Inc., is seeking an order to commence a liquidation that would result in a wind-down of its business following court approval,” the retailer said in a statement.
“The company deeply regrets this pending outcome and the resulting loss of jobs and store closures.”
The court overseeing Sears Canada’s operations is expected to hear a motion Friday seeking approval for the liquidation and wind down of the business.
The company wants to start the liquidation sales no later than Oct. 19 and expects them to continue for 10 to 14 weeks.
Sears Canada currently has 74 full-line locations, eight Sears Home Stores, and roughly 49 Sears Hometown stores, according to Sears Canada spokesman Joel Shaffer.
The retailer currently has approximately 12,000 employees, three-quarters of which are part-time, Shaffer added. Of the roughly 800 employees in Sears Canada’s head office, the vast majority will exit next week, he said.
That tally doesn’t include the 2,900 in job reductions Sears Canada previously announced in June, when it announced the closure of 20 full-line locations, 15 Sears Home stores, 10 Sears Outlet and 14 Sears Home Town locations.
Litigators for a group of lenders who have provided debtor-in-possession financing to Sears Canada to keep it afloat pushed for a liquidation agreement to be entered into by Oct. 7 at the latest. The lenders pushed for approval no later than Oct. 13, in order to liquidate before the crucial holiday season and maximize value.
With files from the Canadian Press